New product targets funding gaps for major business productivity projects
BNZ research suggests many business customers are unclear on how to fund productivity-focused projects. Nearly a quarter of respondents identified upfront costs as a major barrier, while around one in five said they were unsure where to access funding or what information they'd need to apply.
Alex West, BNZ's head of sustainable finance, growth sectors, said the survey findings point to an opportunity for advisers and bankers to engage more directly with clients on both the scope of their plans and the finance options available to support them.
"We want businesses to talk to us about the whole project and what they will need to make it work," West said. "That includes the equipment, technology, people, and changes behind it, as well as how and when the investment is expected to benefit the business."
New product targets the gap
In response, BNZ has introduced Productivity Finance, aimed at businesses looking to invest in equipment, technology, and process improvements, but which need time before those investments start paying off.
The product is designed to fund major upgrade projects in full — spanning equipment, software, process changes, training, and specialist advice — with repayments structured around when the business expects to see results, including an interest-only period during the transition phase.
West said the product responds to a common gap between when the costs of modernisation hit and when the benefits materialise.
"The costs start straight away, but it can take time for the investment to deliver results," West said. "BNZ's Productivity Finance gives businesses some breathing room while they make the changes."
Extends BNZ's sector-specific lending approach
Productivity Finance builds on a run of tailored funding products BNZ has introduced since 2021, including Revenue Based Financing for software companies and Contracted Receivables Financing for tech businesses fulfilling major contracts. The bank has already applied a similar structuring approach informally with individual clients, including Taranaki commercial laundry La Nuova, which used a mix of BNZ finance to fund a $5 million automation project without redundancies.
"Every business invests and grows differently," West said. "Productivity Finance gives us another way to work alongside businesses wanting to modernise, increase capacity and prepare for the future."
ASB has taken a different route to lifting business productivity, launching Pathway to Productivity — combining an AI bootcamp and subsidised consultancy, aiming to back 4,100 New Zealand businesses.
The product is aimed at businesses with annual turnover between $5 million and $50 million, with a minimum loan amount of $500,000, though the bank said businesses outside that range may be considered individually.
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